A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: January 2011

Why the 100% increase in Puzzler Sudoku One-A-Day stock?

puzzler-sudoku.JPGSomeone (computer or real person) decided we deserved a 100% increase in supply for the latest Puzzler Sudoku One-A-Day title this morning.  Rather than making newsagencies the warehouse and banker for Puzzler, why can’t sales based replenishment be used to transact more fairly with us?  More than half the stock supplied is sitting in a drawer.

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crosswords

Segmenting magazines has helped define focus

mag-section.JPGWhen we moved to our temporary location a few months ago, we had no choice but to shoe-horn magazines into fixtures which were designed for greeting cards.

One side of the new magazine aisle was made up of sections, such as the one shown in the photo.  This made us look differently at title adjacencies and while we were left with some challenges due to space, the result was tighter sections targeting common interests.

While I like the idea of the segmented areas, I know that tenancy and other costs make this less efficient allocation of space unrealistic for newsagencies of the future.

That said, the smaller sections have made it easier to watch shopper interaction and title performance with a narrower focus.

The segmented experience, the tighter space and going from 1,250 titles to 750 titles has reinforced for me the importance of ensuring that newsagency shop fits are flexible so that configurations can change with need and that floor space allocation can change to reflect margin dollars return.

Installing a purpose built magazine fixture which cannot be easily changed without construction of any sort is nuts.

The other reminder is that of change in the magazine department.  Even over the last five months, we have moved sections in pursuit of better sales.  This must be an on-going process in any newsagency.  It is certainly a way of demonstrating a point of difference over our planogram-centric competitors,.

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magazines

The Aussie cards ideal for impulse

aussie-cards.JPGIn the move to our temporary location in August last year, from 330 Sq M down to 97 sq m, we had to pare back on a ton of stock.  Our range of Australian note cards were not put into the smaller store.  No customers asked for them.  While sales were good in the bigger store, that they were not asked for suggested in our new location they were mainly purchased on impulse.

We realised the truth of this in the past week when we put the note cards back into a high traffic location.  They started selling right away – usually at least two packs at a time.

Making changes,even small changes, in our newsagencies every day can help us uncover opportunities which we may have thought passed us by.

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Newsagency opportunities

Promoting Girlfriend magazine

knx-gf.JPGWe are promoting the latest issue of Girlfriend magazine with this simple aisle end display facing shoppers as they leave our women’s / girl’s magazine area.  In addition to acting as a billboard for the title, shoppers can browse and purchase off the display – important for any display.  We change these displays weekly – essential given the frequency of shopper visits to a newsagency.

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magazines

Flood donations slow to a trickle

Since the shrill attacks on the flood levy by sections of the media, donations into our Flood Appeal collection tins have slowed to a trickle.  This is unfortunate as the need for these funds has not diminished. Further, the funds are being used for purposes outside those funds allocated and to be allocated by state and federal governments.

While we will take our collection tins down tomorrow, we will continue to support the efforts of the Flood Appeals in other ways – such as engaging with community fund raising activities.  However, even these appear to have slowed.

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Social responsibility

Making the most of Valentine’s Day 2011

knx-val2.JPGWith Valentine’s Day on a Monday this year, we may miss the opportunity of the crazy Saturday or Sunday last minute shop.  We are trying to counter this by moving the display to the front of the store and facing it into the mall.

The display in this photo is our display from January 18 moved to a new and higher traffic location.

We do this with all major seasons, move the displays through the course of the seasonal on-sale.  Its is vital to combat store blindness and to build the skills of the team in telling a story.

Newsagencies in shopping centres especially need to invest considerable time refreshing their visual pitch on a daily basis.  With so many other retailers offering what we sell, we need to demonstrate a difference which is appealing and taps into the sentiment of the season.

Valentine’s Day sales are ticking along nicely. I am quietly confident for this first major season of 2011.

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retail

Supporting newspaper promotions

knx-triv.JPGFurther to my somewhat controversial post a few days ago about the Australia Day hat promotion, here is what the creative team did in one of my stores yesterday to promote the Herald Sun Trivial Pursuit promotion which commences this morning.  This is at the end of the counter facing into the mall.  They tool the collateral provided and added the sign indicating that the promotion starts tomorrow.

We embrace the newspaper opportunity whenever possible and do more than just put the stock out and expect the products to sell themselves.  These promotions are run for a reason after all.

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Newspapers

Cup cakes?

cupcake.jpgI was talking with someone looking to buy a newsagency this afternoon and they asked if I knew of anyone selling cup cakes in their newsagency?  I said I would ask here.  I am aware of cup cake shops next to or near several capital city newsagencies but not inside the store.

I like the idea of cup cakes in a newsagency as they are one of the essential foods for survival.

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newsagency of the future

Promoting Chinese New Year 2011

chinesenewyear-2011.JPGIt is Chinese New Year this coming Wednesday and we have had a range of cards and red packets (for giving money) available for some weeks.  Our Asian customers appreciate the service.  It taps in well with lottery sales too.  Chinese New Year is a good seasonal opportunity for retailers, newsagents especially, since it is all about luck and hope.  In past years, when we have had more space, we have dressed the store with traditional Chinese lanterns and other items.  The customer engagement demonstrated the value of retail theatre.  This year, with limited space we have cards, red packets and some news and coverage in our customer newsletter … and a greeting for this Year of the Rabbit.

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newsagency marketing

Biggest Loser Calorie Counter a great promotion

caloriecounter.JPGThe Biggest Loser Calorie Counter which is free with today’ Herald Sun is an excellent promotion and is set to drive sales – based on comments made yesterday by customers.  We hope that we have the quantities right, thanks to help from the publisher,  in each of our stores so that our customers and home delivery customers can collect the freebie from us.

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Newspapers

Promoting MasterChef magazine

masterchef-feb2011.JPGWe are promoting the latest issue of the MasterChef magazine with our newspapers this weekend as well with a half waterfall in our food section and two pockets in with weeklies.  It is the weeklies pocket which is working best for us so far with this issue.  With weekend sales strong for this title, the additional placement with newspapers should work a treat.  For major monthlies, like MasterChef, I think it’s important that newsagents do not take a set and forget approach.  Customers become store blind – just as we do.  Moving titles around and co-locating can drive valuable incremental business, especially with magazines.

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magazines

Promoting the freebies in kids magazines

waterg-kz1.jpgOur team at Watergardens does a wonderful job promoting value in magazines, especially kids magazines.  Click on the image to see a better version of a photo of a display near the counter at the front of the store, facing into the mall, which is promoting the latest issue of K-Zone magazine and the freebies which come with this.  The display not only shows the value of the title but also promotes to the target audience at their height.  As well as driving sales of the title, the display also shows our business off as having products aimed at kids.

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magazines

When the newspaper tries to direct policy

heraldsun-jan28.JPGI am disappointed with the cover of today’s Herald Sun newspaper.  It is not reporting the news as a newspaper should.

This cover seeks to tell readers what to think on the issue of the flood levy announced by the federal government yesterday.  They have carefully selected a photo, doctored it and surrounded it with text designed to get people angry.

It is newspaper covers like this which are making the flood levy one of the most unpopular levies in recent memory.

The Herald Sun cover is the shrill I expect to see or hear from the ultra conservative FOX ‘News’ network. I say ‘News’ because FOX is less of a news network and more a lobby arm of ultra conservative forces in the US.  Both the Herald Sun and FOX News are published by the same business – News Corp.

I prefer newspapers to report news in a balanced and professional way and not seek to blatantly drive the political agenda of their owners.

Any concerns about the levy and the track record of the federal government could have been addressed in a far more professional way.  That they focus on the PM is odd given that the spending decisions will be made in Queensland by the Bligh government.

Sorry for being so far off topic in this blog post.  Seeing the cover of today’s Herald Sun go across the counter is frustrating.

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Newspapers

Farewell Forest Hill

farewell-foresthill.jpgA few months ago we signed an agreement for the sale of our newsXpress Forest Hill business.  This came at the same time we had been temporarily relocated by the landlord due to construction impacting our level 2 location.  The construction dragged on as did the negotiations for a new lease.  The timing is such that we have to be out of our temporary location on Saturday February 12.  The couple purchasing the business will not be ready to trade from the new location until early April as they can only get access at the end of this month and have a full shop-fit to undertake.

Given that we have been at Forest Hill for fifteen years, we wanted to give our customers fair notice of the changes.  Yesterday, we started handing out a letter explaining the moves.  I publish it here to show our approach to sharing the news with our customers, to demonstrate our transparency and to publish the facts to our gossip loving channel.

We have a busy two weeks at this store while also keeping the finger on the pulse of our three other newsagencies.

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About us

Promoting crosswords for Valentine’s Day

val-crosswords.JPGWe are promoting the Valentine’s Day themed BIG crossword from Lovatts with our Valentine’s Day range.  Regulars here will know that we do this every year.  It’s a successful move!  While most of the stock is split between our weeklies section and the crossword section, this small placement always drives incremental business.  It is especially appealing to some of our older customers.  I have seen them pick up the crossword book and then a card.  Who knows, if the crossword book was not next to the display they may have never purchased a Valentine’s Day card.

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crosswords

Check your business insurance

In the light of experiences newsagents have had and are having with insurance as a result of the floods and some experiences from Victoria following the bushfires two years ago, now is a good time for newsagents to check their insurance coverage.

Ensure that you have coverage for all of the events appropriate to your business.  Ensure that your stock value is accurate.  Ensure that your fixtures value for replacement is at the level it ought be.

The last thing you want is to find that you do not have enough coverage when you need it.

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Newsagency management

Hoyts stops newsagents selling discount movie tickets

Hoyts has complained to our movie ticket supplier (C-Direct) about our good sales of their movie tickets.  They are apparently unhappy that our sales of discount tickets are reducing their margin.  The upshot is that we will no longer be supplied Hoyts tickets.  We have been told that Hoyts objects to tickets being sold by newsagents in a centre with a Hoyts cinema.

If this is true, Hoyts should have allowed for this when they decided to agree to sell discount tickets outside of their own box offices.  To allow us to promote and grow ticket sales and then take the product away is poor form.

I’d be interested to know if other newsagents, particularly those supplied by C-Direct, are affected by this.

We are letting our customers know that this is a Hoyts decision, to deny our customers the opportunity of conveniently saving money on tickets.  This move by Hoyts is sure to damage their brand.

Way to go Hoyts.

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Newsagency challenges

Promoting Dymo labellers

dymo-labeller.JPGWith Dymo advertising on radio at the moment it’s appropriate that we promote their products in a more prominent position – to leverage their advertising spend into sales.  I started doing this in my stores as soon as I heard their ads a couple of times on the radio.  While I wish they had given us a heads up, we responded to the ads with action.  It made me wish that there was a central register of all advertising of products newsagencies typically carry.  We could sure use this.

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Stationery

Promoting Take 5 and the chocolate bar

t5-choc.JPGThe latest issue of Take 5, out yesterday, comes bagged with a free Celebrity Slim chocolate bar as part of a Connections promotion.  We are leveraging the opportunity with an in location display plus an impulse display at the counter.  The counter position worked a treat yesterday with good sales.  It’s nice to see a newspaper customer impulse purchase a magazine.  This is the kind of magazine promotion I like (yes, even though the magazine is bagged).  It is easily understood, well pitched at the Take 5 consumer and taps into a topic of real interest – weight loss.

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magazines

Promoting Campertrailer Australia

campertrailer-aust.JPGOur supply of the latest issue of Campertrailer Australia is double what we expected based on past supply and sales.  I suspect it is because of the bagged issue.  We will give it a god but boy I wish I had a say in supply rather than just receiving a surprise when unpacking magazines in the morning.  It’s my money at risk after all.  My money in labour, retail real estate and theft.  We are supporting the title with a half waterfall.  the rest of the stock is in storage.

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magazines

James Murdoch speaks about the iPad and The Daily

Check out this interview with James Murdoch recorded recently at the 2011 DLD (Digital – Life – Design) Conference held earlier this week in Munich.  The interview is a fascinating insight into the person some say will run News Corp in the future.  It is also offers an insight into the company’s plans for and thinking around its iPad newspaper offering, The Daily.

It is great to have an opportunity to access interviews like this without having to be at the event.

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Media disruption

Barnes & Noble sells 650,000 magazines and subs

min online is reporting that Barnes & Noble has sold 650,000 magazine subscriptions and single copies for its NOOK dihital reader so far.  Whiiile the iPad has been getting the attention, the NOOK has been slowly but surely building a strong following.  650,000 single copy and subs sales is good business.

Check out the NOOK digital newsstand here.

Borders here in Australia is emulating the Barnes and Noble move.

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Media disruption

Giving away a camera for Valentine’s Day

val-camera.JPGOne lucky customer in my stores will win a JVC Picsio pocket camera thanks to the Valentine’s Day promotion from Hallmark Cards.  These seasonal deals help reinforce a point of difference since not all retailers have offers like this for Valentine’s Day. Being known for a great seasonal card range and a place where shoppers win prizes helps bring infrequent card buyers back for the seasons. We are promoting the heck out of the prize for this very reason – we are the only store in each of our centres with such an offer for Valentine’s Day.

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Greeting Cards